Tuesday, May 12, 2015

UPS United Postal Service Weekly Chart 20/50-Week MA Cross Failure Signals Cyclical Bear Market Ahead

It has been a very long time before the 20-week MA has crossed under the 50-week MA for UPS; an important Keystone cyclical market signal. The negative cross occurs and signals a cyclical bear market ahead for stocks in the weeks and months ahead. The bulls must reverse the cross as soon as possible or pain will begin and fester as the year moves along. UPS and FDX are key bellwethers of the global economy and the UPS 20/50-week MA negative cross is a bad omen for equities going forward.

The last significant failure was back in 2011 after the August waterfall crash. The bulls recovered in early 2012 because Fed Chairman Bernanke goosed the sotck market with quantitative easing and his ZIRP Forever policy. Another stutter-step occurs in late 2012 signaling bear joy ahead but the bulls recover again when Congress resolved the budget battle and the global central bankers, led by the Federal Reserve, kept printing easy money to pump stocks higher. That last bearish action was over two years ago.

The bears threatened a negative 20/50 cross in October 2014 seven months ago but the global central bankers colluded to prevent a market crash (as explained by Keystone at the time; use the search function at the right margin to bring that information up for further study) and UPS as well as the broad stock market, recovered to new record highs. The bears may finally have their turn at bat ending the six-year stock market rally completely orchestrated by central banker money printing. The red lines show the negative divergence forming as price peaked to begin the new year and the neggie d created the big spank down (red arrow) and now the 20/50 MA cross failure.

The UPS 20/50-week MA negative cross is a substantive negative market signal. Watch it closely moving forward over the coming weeks. The market bears receive a substantial feather for the caps. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added Saturday morning 5/16/15: GS steps in to save the day upgrading UPS. The timing is very fortunate for bulls. Do you think the negative 20/50 cross scared them? UPS explodes +2.5% higher on Friday after the Goldman Sachs upgrade. The 20-week MA is at 100.27 and 50-week MA at 100.33 so the bears are winning the fight but only by six pennies. Watch UPS closely going forward. The market bulls are trying to save the day like they did in October when the central bankers colluded to prevent the negative UPS 20/50 cross.

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